Hawaiian Electric Will Power New 110-MW Plant with Biofuels

December 27, 2006

Hawaiian Electric Company (HECO), based in Honolulu, has issued a request for proposals (RFP) to find a supplier of ethanol or biodiesel for use in HECO’s planned 110-megawatt (MW) Campbell Industrial Park Generation Station in Honolulu.

The new plant will be designed to use a variety of fossil and renewable fuels, but in a recent agreement reached with the Hawaii Division of Consumer Advocacy, HECO committed to use 100 percent biofuel. The agreement is subject to approval from the Hawaii Public Utilities Commission and obtaining the necessary air permit from the State of Hawaii Department of Health. HECO senior vice president of operations Tom Joaquin said, "As far as we know, there is not another utility combustion turbine electricity generator using or planning to use biofuels in the United States, and probably the world.”

Potential biofuel suppliers have until February 15, 2007 to submit a proposal. HECO’s preference is for biofuel made from Hawaii-grown feedstock, but is open to biofuel produced elsewhere. The new generating station may be in service as early as mid-2009.

HECO’s decision between ethanol and biodiesel and its selection of a supplier will be based on many factors, including price, value, timeliness of supply, technical considerations, security of supply, terms and conditions of supply, supplier experience and demonstrated ability to perform, delivery means and methods, and product quality. HECO estimates that operating the unit on 100 percent biofuel will normally require between 5 million and 12 million gallons, with a maximum of up to 20 million gallons per year.

For more information, see the December 26 HECO press release.